Property Market Biggest Hurdle Is Strict Lending Conditions by Banks - REHDA
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The Real Estate and Housing Developers’ Association (REHDA) said the strict conditions imposed by banks on home loan applicants is the biggest hurdle in the property market.
Free Malaysia Today reports that REHDA says the "tight-fisted" bank conditions remained an obstacle, amidst the government's measures to encourage home ownership by waiving stamp duty fees and providing other incentives and discounts as part of the Home Ownership Campaign (HOC) which ends in June.
REHDA's President Dato Ir Soam Heng Choon was quoted as saying that banks should gauge an applicant’s ability to repay their loan using aspects of his financial background outside the debt-service ratio.
“A 25-year-old who just started working might not be eligible for a loan but banks must take other factors into consideration such as parental financial support,” Soam said.
“Banks should be more robust at credit profiling."
REHDA has announced that it aims to sell over RM3 billion worth of properties during the six-month HOC.
The HOC features stamp duty waivers for properties priced between RM300,000 and RM1 million, and 3% stamp duty for properties priced between RM1 million and RM2.5 million, as well as a 0.5% stamp duty on all bank loans for properties up to RM2.5 million.
All home buyers are eligible.